Renewable energy auctions: Cases from sub-Saharan Africa

Renewable energy auctions have emerged as an important mechanism to drive the adoption of renewable sources for power generation. Like in other regions, auctions can help countries across sub-Saharan Africa achieve record-low prices for solar photovoltaic (PV) and wind power.
a year ago

Publisher: IRENA

Abstract

Renewable energy auctions have emerged as an important mechanism to drive the adoption of renewable sources for power generation. Like in other regions, auctions can help countries across sub-Saharan Africa achieve record-low prices for solar photovoltaic (PV) and wind power. Ghana, Mauritius, Uganda, South Africa and Zambia have all run renewable energy auctions, while at least 15 more sub-Saharan African countries are developing such programmes for competitive procurement.

South Africa’s auction scheme stands out due to its size and comprehensiveness. In addition, it takes a longer-term view and appears particularly well integrated with overall economic and electricity strategies. Socio-economic and environmental considerations have increased the country’s motivation to adopt renewable energy auctions. At the same time, however, South Africa’s latest auction results have made PV and wind power cheaper than the average cost of power supply from the national utility and far below the cost of new coal-fired power stations.

A key factor to ensure the durability of an auction scheme is the need for independent and transparent auction management, which results in effectively designed power purchase agreements (PPAs) and other contracts. Auctions should also be closely linked to wider national development policies, notes this study of recent cases in sub-Saharan Africa by the International Renewable Energy Agency (IRENA).

Auctions remain highly specific to each jurisdiction, with underlying differences commonly driving the resulting electricity prices. Resource quality, financing and capital costs, risk allocation among various stakeholders, and specific project selection criteria, such as economic development aims or technical and environmental standards, all shape the final costs of renewable power at auction. All these cost drivers should be considered when comparing auction prices from different jurisdictions or times.

Understanding cost drivers, moreover, can help auctioneers to continually improve auction design and other investment conditions for renewables. Ugandan and Zambian auction schemes, for example, along with the latest South African scheme, ensure that site selection takes account of network infrastructure and environmental factors.

Even so, too much governmental involvement may add to costs and increase the investment risks for project developers, as was witnessed in suboptimal location choices in some sub-Saharan African auction schemes.

Source: IRENA

Illustration Photo: The solar panels installed in the village of Mpanta, Zambia (credits: UNIDO / Flickr Creative Commons Attribution-NoDerivs 2.0 Generic (CC BY-ND 2.0))

Read more

Comments

No comments to display.

Related posts

Hadron Therapy Industry 2019-2025: Global Size, Share, Emerging Trends, Demand, Revenue and Forecasts Research

Hadron Therapy Industry 2019 Global Market research report studies latest Hadron Therapy industry aspects market size, share, trends, growth, business overview and Hadron Therapy industry scenario during the forecast period (2019-2025).

Acid Catalysts Industry 2019: Global Market Size, Growth, Share, Insights, Supply, Drivers, Demand, Outlook, Trends and Forecasts 2025

A latest report has been added to the wide database of Orian Research Consultant titled “Global Acid Catalysts Market Research Report (2025)” which provides an outlook of current market value, Size, Share, Growth, Trends and Forecast.
3 days ago

Continuous Renal Replacement Therapy Industry 2019 Global Market Size, Share, Growth, Sales and Drivers Analysis Research Report 2025

Continuous Renal Replacement Therapy Industry 2019 Global Market Research report provides information regarding market size, share, trends, growth, cost structure, capacity, and revenue and forecast 2025.

Black Pellets Industry 2019 Global Market Size, Outlook, Demand, Key Manufacturers and 2025 Forecast

A recent market report published on the “Black Pellets Industry” presents an in-depth overview of the Black Pellets industry. Global Black Pellets market research report covers the overview, summary, Black Pellets market dynamics, competitive analysis, and leading player’s various strategies to sustain in the global market. Apart from this, the Black Pellets report also covers detail information about various clients which is the most significant element for the manufacturers.
3 days ago

Call for Applications: Startup World Cup 2019

Startup World Cup ("SWC") offers innovation and entrepreneurship opportunities for startup ecosystems around the world. This platform consists of a global series of startup conferences and competitions that bring together phenomenal startups, VCs, and world-class tech CEOs.
Application Deadline in 2 months

EU Call for Proposals: Information and promotion about the sustainable aspect of rice production

The objective is to highlight the sustainable aspect of rice sector. Rice production in Europe has a particular environmental dimension, being at the heart of the preservation of certain wetlands. Rice cultivation is a sensitive and specific practice at European level, since it is produced in areas where there are few crop alternatives. Its preservation and improvement contribute to the sustainability of rice producing regions, by playing an active role in maintaining rural areas, protecting nature and preserving biodiversity. Actions shall highlight the environmental sustainability of the production, stressing its beneficial role for climate action and the environment.
Application Deadline in 22 days

A low-cost and open-source platform for automated imaging

Remote monitoring of plants using hyperspectral imaging has become an important tool for the study of plant growth, development, and physiology. Many applications are oriented towards use in field environments to enable non-destructive analysis of crop responses due to factors such as drought, nutrient deficiency, and disease, e.g., using tram, drone, or airplane mounted instruments.

Can developing nations compete in a digital world?

People want in on e-commerce for simple reasons - choice, ease, speed, cost, convenience. Yet not everyone benefits equally, especially in least developed countries.